Accumulation Phase

Accumulation happens after the market has bottomed out, investors beginning to buy undervalued assets, anticipating a future uptrend. Prices are generally low, and market sentiment shifts from negative to neutral.

What You Need To Know

The accumulation phase is the period in an individual’s financial life when they actively save and invest to build wealth. It typically begins during their working years and continues until retirement. The focus during this phase is on consistent contributions to savings, investing in diverse assets (e.g., stocks, bonds, real estate), and leveraging compound interest to grow the portfolio over time. This phase lays the foundation for financial security in later stages, such as retirement or distribution.